There are many little island nations that have established financial services and international offshore banking platforms. These cater not only to corporations but also to private individuals who are interested in banking offshore. One of the key benefits of using such banking facilities is that the tax structures are great and there is easy flow of foreign currencies.
Bahamas as an offshore banking destination
Bahamas has acquired a good reputation for providing offshore banking services. Although not a new player in this industry, the Bahamian government has spent the last decade restructuring its banking and financial services sector to be friendlier and more compliant with international best practices and regulations.
As a consequence, today their banks work in compliance with international banking law. For investors and offshore banking customers, whether corporations or individuals, this has provided a much-needed confidence boost. Bahamas offshore banking boasts easy accessibility to funds and responsiveness to their customers’ needs and requirements. In addition, there are great tax policies in the Bahamas. This means that it is possible to avoid taxes on cash assets, and income is accorded tax-free status. Indeed, the banking structure specifically provides tax shelters for its account holders. In order to remain competitive with other countries that offer similar offshore financial services, the service charges imposed by the banks are lower and the interest rates offered are higher.
If you are involved in international business with funds flowing through different countries and customers paying in different currencies or suppliers based on different continents, an offshore business account in the Bahamas might be appealing. This is because they allow dealings in multiple currencies, and you will end up saving a substantial amount of money on exchange rates and financial charges by using your offshore business account for these purposes. In addition, it is useful to note that the Bahamian government has very strict confidentiality laws and this may be a boon for some investors and offshore bank account holders. These regulations have also been modified in recent times to ensure compliance with international standards.
The last decade has seen an aggressive growth of this industry area in the Bahamas with focus not only on offering offshore banking services but also expansions into the insurance, reinsurance and mutual funds industries. With hundred of international organizations using the Bahamas as their base for the conduct of these financial services and for the development of international portfolios, these specific areas drive the key elements of offshore banking in the Bahamas. To encourage international interest, the Bahamian government makes incorporation of companies easy, provides a 20 year tax-free business environment for companies incorporated there and does not impose requirements in terms of the individuals who can be shareholders in the company.
If you are serious about setting up offshore banking facilities, as an individual or for your corporate entity, it is worthwhile exploring the Bahamian option. It simply provides reliable regulations, stable government and best of all, a justifiable annual visit to check on your financials after which a day on the beach with the ocean for company. Enjoy the life, folks!